MCGRAW HILL PT 2 EXAM QUESTIONS
AND ANSWERS GRADED A+ 2025/2026
Standards used to differentiate employees and independent contractors include -
ANS material contribution work direction
Under the ___________ ____________ ___________ ___________ , certain items are required
in every employee's file. - ANS fair labor standards act
What are the three common-law tests the IRS uses to differentiate between employees and
independent contractors? - ANS Behavioral Control
Relationship of the Parties
Financial Control
What are three important questions that an employer should ask when creating a payroll
system - ANS How does the company handle governmental compliance?
How will the company handle employee terminations?
How will the company handle employees who transfer between departments?
The determination of __________ _______ is the first payroll item that must be established. -
ANS pay cycle
The governmental forms required of all new hires are the ____________and _____________ -
ANS w4 i9
1 @COPYRIGHT 2026 ALLRIGHTS RESERVED.
, An _____________ _________________ is not considered an employee and is not subject to
payroll legislation.
Listen to the complete question - ANS independent contractor
Which of the following is true about independent contractors? - ANS Independent
contractors are not subject to FLSA provisions regarding hourly wages and overtime.
Employees hired prior to January 1, 2020, need to file a new Form W-4. - ANS false
Which of the following is a question that an employer must face upon payroll system
establishment? - ANS What are the procedures for employee transfers?
What are new hire policies and procedures?
List the purposes for new hire reporting - ANS Communication of professional violations
Immigration agency records
Child support tracking
Administration of COBRA benefits
Which of the following is true about independent contractors? (Check all that apply). -
ANS Independent contractors are not considered employees.
Independent contractors control the manner in which they complete their work.
What are the criteria used in the determination of a worker as an employee? (Select all that
apply) - ANS Work direction
Material contribution
Additional withholdings _______ the employee's tax liability. - ANS lower
Which of the following items are present on the 2020 Form W-4? - ANS Deductions for
dependents
2 @COPYRIGHT 2026 ALLRIGHTS RESERVED.
AND ANSWERS GRADED A+ 2025/2026
Standards used to differentiate employees and independent contractors include -
ANS material contribution work direction
Under the ___________ ____________ ___________ ___________ , certain items are required
in every employee's file. - ANS fair labor standards act
What are the three common-law tests the IRS uses to differentiate between employees and
independent contractors? - ANS Behavioral Control
Relationship of the Parties
Financial Control
What are three important questions that an employer should ask when creating a payroll
system - ANS How does the company handle governmental compliance?
How will the company handle employee terminations?
How will the company handle employees who transfer between departments?
The determination of __________ _______ is the first payroll item that must be established. -
ANS pay cycle
The governmental forms required of all new hires are the ____________and _____________ -
ANS w4 i9
1 @COPYRIGHT 2026 ALLRIGHTS RESERVED.
, An _____________ _________________ is not considered an employee and is not subject to
payroll legislation.
Listen to the complete question - ANS independent contractor
Which of the following is true about independent contractors? - ANS Independent
contractors are not subject to FLSA provisions regarding hourly wages and overtime.
Employees hired prior to January 1, 2020, need to file a new Form W-4. - ANS false
Which of the following is a question that an employer must face upon payroll system
establishment? - ANS What are the procedures for employee transfers?
What are new hire policies and procedures?
List the purposes for new hire reporting - ANS Communication of professional violations
Immigration agency records
Child support tracking
Administration of COBRA benefits
Which of the following is true about independent contractors? (Check all that apply). -
ANS Independent contractors are not considered employees.
Independent contractors control the manner in which they complete their work.
What are the criteria used in the determination of a worker as an employee? (Select all that
apply) - ANS Work direction
Material contribution
Additional withholdings _______ the employee's tax liability. - ANS lower
Which of the following items are present on the 2020 Form W-4? - ANS Deductions for
dependents
2 @COPYRIGHT 2026 ALLRIGHTS RESERVED.
